Transcript Six Sigma - Tom Timbrooks Consulting

Six Sigma
Six Sigma Definition
• Six Sigma is a business management strategy originally developed
by Motorola, USA in 1981.
• As of 2010, it enjoys widespread application in many sectors of
industry, although its application is not without controversy.
• Six Sigma seeks to improve the quality of process outputs by
identifying and removing the causes of defects (errors) and
minimizing variability in manufacturing and business processes.
• It uses a set of quality management methods, including statistical
methods, and creates a special infrastructure of people within the
organization ("Black Belts", "Green Belts", etc.) who are experts in
these methods.
• Each Six Sigma project carried out within an organization follows a
defined sequence of steps and has quantified targets.
• These targets can be financial (cost reduction or profit increase) or
whatever is critical to the customer of that process (cycle time,
safety, delivery, etc.).
Six Sigma History
• Six Sigma originated as a set of practices designed to improve
manufacturing processes and eliminate defects, but its application
was subsequently extended to other types of business processes as
well.
• In Six Sigma, a defect is defined as any process output that does
not meet customer specifications, or that could lead to creating an
output that does not meet customer specifications.
• Bill Smith first formulated the particulars of the methodology at
Motorola in 1986.
• Six Sigma was heavily inspired by six preceding decades of quality
improvement methodologies such as quality control, TQM, and Zero
Defects, based on the work of pioneers such as Shewhart, Deming,
Juran, Ishikawa, Taguchi and others.
Six Sigma History
• Like its predecessors, Six Sigma doctrine asserts that:
• Continuous efforts to achieve stable and predictable
process results (i.e., reduce process variation) are of
vital importance to business success.
• Manufacturing and business processes have
characteristics that can be measured, analyzed,
improved and controlled.
• Achieving sustained quality improvement requires
commitment from the entire organization, particularly
from top-level management.
Six Sigma History
• Features that set Six Sigma apart from previous quality
improvement initiatives include:
• A clear focus on achieving measurable and quantifiable
financial returns from any Six Sigma project.
• An increased emphasis on strong and passionate
management leadership and support.
• A special infrastructure of "Champions," "Master Black
Belts," "Black Belts," etc. to lead and implement the Six
Sigma approach.
• A clear commitment to making decisions on the basis of
verifiable data, rather than assumptions and guesswork.
Six Sigma History
• The term "Six Sigma" comes from a field of
statistics known as process capability studies.
• Originally, it referred to the ability of
manufacturing processes to produce a very high
proportion of output within specification.
• Processes that operate with "six sigma quality"
over the short term are assumed to produce
long-term defect levels below 3.4 defects per
million opportunities (DPMO).
Six Sigma History
• Six Sigma's implicit goal is to improve all processes to that level of
quality or better.
• Six Sigma is a registered service mark and trademark of Motorola
Inc.
• As of 2006 Motorola reported over US$17 billion in savings from Six
Sigma.
• Other early adopters of Six Sigma who achieved well-publicized
success include Honeywell (previously known as AlliedSignal) and
General Electric, where Jack Welch introduced the method.
• By the late 1990s, about two-thirds of the Fortune 500 organizations
had begun Six Sigma initiatives with the aim of reducing costs and
improving quality.
• In recent years, some practitioners have combined Six Sigma ideas
with lean manufacturing to yield a methodology named Lean Six
Sigma.
Six Sigma Methods
• Six Sigma projects follow two project
methodologies inspired by Deming's Plan-DoCheck-Act Cycle. These methodologies,
comprising five phases each, bear the acronyms
DMAIC and DMADV.
• DMAIC is used for projects aimed at improving
an existing business process.
• DMADV is used for projects aimed at creating
new product or process designs.
Six Sigma Methods
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The DMAIC project methodology has five phases:
Define the problem, the voice of the customer, and the project goals,
specifically.
Measure key aspects of the current process and collect relevant data.
Analyze the data to investigate and verify cause-and-effect relationships.
Determine what the relationships are, and attempt to ensure that all factors
have been considered. Seek out root cause of the defect under
investigation.
Improve or optimize the current process based upon data analysis using
techniques such as design of experiments, poka yoke or mistake proofing,
and standard work to create a new, future state process. Set up pilot runs to
establish process capability.
Control the future state process to ensure that any deviations from target
are corrected before they result in defects. Control systems are
implemented such as statistical process control, production boards, and
visual workplaces and the process is continuously monitored.
Six Sigma Methods
• The DMADV project methodology, also known as DFSS ("Design
For Six Sigma"), features five phases:
• Define design goals that are consistent with customer demands and
the enterprise strategy.
• Measure and identify CTQs (characteristics that are Critical To
Quality), product capabilities, production process capability, and
risks.
• Analyze to develop and design alternatives, create a high-level
design and evaluate design capability to select the best design.
• Design details, optimize the design, and plan for design verification.
This phase may require simulations.
• Verify the design, set up pilot runs, implement the production
process and hand it over to the process owner(s).
Six Sigma Tools
•Within the individual phases of a DMAIC or DMADV project, Six Sigma utilizes many established
quality-management tools that are also used outside of Six Sigma. The following table shows an
overview of the main methods used.
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5 Whys
Analysis of variance
ANOVA Gauge R&R
Axiomatic design
Business Process Mapping
Catapult exercise on variability
Cause & effects diagram (also known as fishbone
or Ishikawa diagram)
Chi-square test of independence and fits
Control chart
Correlation
Cost-benefit analysis
CTQ tree
Quantitative marketing research through use of
Enterprise Feedback Management (EFM) systems
Design of experiments
Failure mode and effects analysis (FMEA)
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General linear model
Histograms
Homoscedasticity
Quality Function Deployment (QFD)
Pareto chart
Pick chart
Process capability
Regression analysis
Root cause analysis
Run charts
SIPOC analysis (Suppliers, Inputs, Process,
Outputs, Customers)
Stratification
Taguchi methods
Taguchi Loss Function
Thought process map
TRIZ
Six Sigma Implementation Roles
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One key innovation of Six Sigma involves the "professionalizing" of quality
management functions.
Prior to Six Sigma, quality management in practice was largely relegated to the
production floor and to statisticians in a separate quality department.
Six Sigma borrows martial arts ranking terminology to define a hierarchy (and career
path) that cuts across all business functions.
Six Sigma identifies several key roles for its successful implementation.
Executive Leadership includes the CEO and other members of top management.
They are responsible for setting up a vision for Six Sigma implementation.
They also empower the other role holders with the freedom and resources to explore
new ideas for breakthrough improvements.
Champions take responsibility for Six Sigma implementation across the organization
in an integrated manner.
The Executive Leadership draws them from upper management.
Champions also act as mentors to Black Belts.
Master Black Belts, identified by champions, act as in-house coaches on Six Sigma.
Six Sigma Implementation Roles
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They devote 100% of their time to Six Sigma.
They assist champions and guide Black Belts and Green Belts.
Apart from statistical tasks, they spend their time on ensuring consistent
application of Six Sigma across various functions and departments.
Black Belts operate under Master Black Belts to apply Six Sigma
methodology to specific projects.
They devote 100% of their time to Six Sigma.
They primarily focus on Six Sigma project execution, whereas Champions
and Master Black Belts focus on identifying projects/functions for Six Sigma.
Green Belts, the employees who take up Six Sigma implementation along
with their other job responsibilities, operate under the guidance of Black
Belts.
Yellow Belts, trained in the basic application of Six Sigma management
tools, work with the Black Belt throughout the project stages and are often
the closest to the work.
Six Sigma Origin and Meaning
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The term "six sigma process" comes from the notion that if one has six standard
deviations between the process mean and the nearest specification limit, as shown in
the graph, practically no items will fail to meet specifications.
This is based on the calculation method employed in process capability studies.
Capability studies measure the number of standard deviations between the process
mean and the nearest specification limit in sigma units.
As process standard deviation goes up, or the mean of the process moves away from
the center of the tolerance, fewer standard deviations will fit between the mean and
the nearest specification limit, decreasing the sigma number and increasing the
likelihood of items outside specification.
Six Sigma Origin and Meaning
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Role of the 1.5 sigma shift
Experience has shown that in the long term, processes usually do not perform as well as they do in the short.
As a result, the number of sigmas that will fit between the process mean and the nearest specification limit may well drop over time,
compared to an initial short-term study.
To account for this real-life increase in process variation over time, an empirically-based 1.5 sigma shift is introduced into the calculation.
According to this idea, a process that fits six sigmas between the process mean and the nearest specification limit in a short-term study
will in the long term only fit 4.5 sigmas – either because the process mean will move over time, or because the long-term standard
deviation of the process will be greater than that observed in the short term, or both.
Hence the widely accepted definition of a six sigma process as one that produces 3.4 defective parts per million opportunities (DPMO).
This is based on the fact that a process that is normally distributed will have 3.4 parts per million beyond a point that is 4.5 standard
deviations above or below the mean (one-sided capability study).
So the 3.4 DPMO of a "Six Sigma" process in fact corresponds to 4.5 sigmas, namely 6 sigmas minus the 1.5 sigma shift introduced to
account for long-term variation. This is designed to prevent underestimation of the defect levels likely to be encountered in real-life
operation.
Six Sigma Origin and Meaning
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Sigma levels
A control chart depicting a process that experienced a 1.5 sigma drift in the process
mean toward the upper specification limit starting at midnight.
Control charts are used to maintain 6 sigma quality by signaling when quality
professionals should investigate a process to find and eliminate special-cause
variation.
See also: Three sigma rule
The table below gives long-term DPMO values corresponding to various short-term
sigma levels.
Sigma level
DPMO
Percent
defective
Percentage
yield
Short-term Cpk
Long-term Cpk
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691,462
69%
31%
0.33
-0.17
2
308,538
31%
69%
0.67
0.17
3
66,807
6.7%
93.3%
1.00
0.5
4
6,210
0.62%
99.38%
1.33
0.83
5
233
0.023%
99.977%
1.67
1.17
6
3.4
0.00034%
99.99966%
2.00
1.5
7
0.019
0.0000019%
99.9999981%
2.33
1.83
Six Sigma Origin and Meaning
• Note that these figures assume that the process mean will shift by
1.5 sigma toward the side with the critical specification limit.
• In other words, they assume that after the initial study determining
the short-term sigma level, the long-term Cpk value will turn out to
be 0.5 less than the short-term Cpk value.
• So, for example, the DPMO figure given for 1 sigma assumes that
the long-term process mean will be 0.5 sigma beyond the
specification limit (Cpk = –0.17), rather than 1 sigma within it, as it
was in the short-term study (Cpk = 0.33).
• Note that the defect percentages only indicate defects exceeding the
specification limit to which the process mean is nearest.
• Defects beyond the far specification limit are not included in the
percentages.